2020 has been dubbed the “Year of Gas” and Nigeria’s Gas Master Plan is set to deepen the economic significance of the oil sector.
Under the guidance of State Minister of Petroleum Resources, Hon. Chief Timipre Marlin Sylva and Mele Kolo Kyari, Group Managing Director of NNPC, the current administration is embracing the Gas Master Plan is poised to become the gas hub of West Africa while improving the socio-economic development of the nation. Recently, Hon. Sylva declared 2020 as the “Year of Gas” and this proves to be true as the country makes moves to capitalise on gas and improve its local energy distribution. With an extensive roadmap in place, the gas revolution is on the right track to usher in Buhari’s vision for a next-level Nigeria.
On the same occasion, the Ministry of Petroleum Resources, together with the NNPC, reaffirmed the government’s will to focus on taking all the necessary steps to ensure Nigeria can take full advantage from its vast gas resources: the government signed the landmark Seven Critical Gas Development Projects, which are expected to bring 96.3 mcm per day of gas and generate at least 15,000 MW of electricity by 2020. The projects are poised to contribute decisively in bridging Nigeria’s demand-supply gap in the domestic gas market. The recent rise in Nigeria’s current proven gas reserve up to 202 trillion cubic feet allows more rapid development of the country’s energy sector while revitalising other sectors with the provision of affordable electricity.
Currently, the investment climate is ripe as there are several on-going and upcoming gas projects in the work for the rapid development of the country’s energy sector, such as the proposed 614km Ajaokuta-Kaduna-Kano (AKK) pipeline. The AKK pipeline is a continuation of infrastructure build for the domestic gas market. “The AKK pipeline is part of the gas masterplan,” says Emeka Okwuosa, CEO of Oilserv. “It is going to move 1.5 billion scf of gas a day and provide resources for power generation and other energy requirements. It is not only a development of the north; it is such for the entire country. So, this single project can transform the whole of Nigeria in terms of industrial capacity.”
“Nigeria has been pretty predominant in the oil business. Nigeria has great potential. We have the demographics to decide the right economic framework.”
Tein T.S. Jack-Rich, Founder and President of Belemaoil
The Gas Master Plan is combined with the Nigerian Content Act to ensure that the Year of Gas is not just for industry, it’s a year for Nigerians. As an instrument to spur economic growth and drive industrialisation with linkages to other key sectors of the economy such as construction, ICT, power, railways and agriculture, the Content Act has generated employment, capacity building and economic diversification since its introduction a decade ago. It is also tailored toward making the oil and gas industry a driver of the economy, not just a revenue earner for the country.
Kyari states further, “Between the discovery of hydrocarbon in the Gongola basin and bringing the oil to the market, a lot of processes would be triggered which would snowball into a labyrinth of productive activities with the potential for massive job creation across the value chain.” Ultimately, the Local Content Act is one of the most successful economic policies of the Nigerian federal government in recent times. According to, Hon. Chief Sylva, “We are aware of the recent pledges by the local content committees of the Senate and House of Representatives to extend the Nigerian Content Act to other key sectors of the economy. This is because we can all see the benefits so far realised from the implementation of Nigerian Content requirements in the oil and gas industry.”
The on-going implementation of the Gas Master Plan and the Nigerian Content Act will create jobs, facilitate investment and offer greater access to electricity while providing stranded commercial and industrial customers with a cleaner and more efficient source of energy. Oil is a constant, but gas will continue to play an increasingly important role to ensure that Nigeria progresses forward towards the next level. “The country is looking at gas because that means great opportunities,” says Engr. Sarki Auwalu, Director of DPR. “The entire nation is looking at how we can get gas to people. Nigeria is the best country in the world. We are yet to be discovered. This is the country of opportunity.”
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